Are you providing money services for your customers?
Do you have a license for the regulated services you provide?
Take a lesson from this NJ licensed money transmitter who was cashing checks on the side. He charged 3% to cash checks; and then would take them to a licensed check cashing establishment; where he received cash for the checks. Not exactly legal!
I’m sure you’re not doing that, but now might be a good time to make sure you’re complying with all licensing requirements for check cashing; local, state and federal.
LOCAL
There maybe zoning or permit requirements. Check with your local government for more information.
STATE
Thirty-two states require license or registration; while eighteen are unregulated. Click here for our matrix of state agencies. Here you’ll find information on which state’s regulate check cashers, name of state agency and a link to the agency’s site. Do note that rules may vary by state. If your primary business is not check cashing, you should definitely check your state’s site to make sure you are following regulations for the services you are providing.
Need help understanding your state regulations?
Contact an AllTrust representative at 1-866-280-1679 or at pcssales<at>alltrustnetworks.com. Or fill in our online form.
FEDERAL
The federal government has their own licensing requirements for money service businesses, regulated by the Financial Crimes Enforcement Network (or FinCEN). You are considered a money service business by FinCEN if you offer one or more of the following services:
- Money orders
- Traveler’s checks
- Check cashing
- Currency dealing / exchange
- Stored value
AND
Your business conducts more than $1000 in MSB activity with the same person on the same day.
OR
Your business provides money transfer services in any amount.
Be sure to visit http://www.fincen.gov/financial_institutions/msb/ to register.
